Peyton Investments completed the following investment transactions during 2018: 2018 Jan. 5 Purchased Vedder Company's $400,000 bond

Question:

Peyton Investments completed the following investment transactions during 2018:
2018
Jan. 5 Purchased Vedder Company's $400,000 bond at face value. Peyton classified the investment as available-for-sale. The Vedder bond pays interest at the annual rate of 4% on June 30 and December 31 and matures on December 31, 2021. Management's intent is to keep the bonds for several years.
Jun. 30 Received an interest payment from Vedder.
Dec. 31 Received an interest payment from Vedder.
31 Adjusted the investment to its current market value of $396,000.
Requirements
1. Journalize Peyton's investment transactions. Explanations are not required.
2. Prepare a partial for Peyton's Vedder investment as of December 31, 2018.
3. Prepare a comprehensive income statement for Peyton Investments for year ended December 31, 2018. Assume net income was $200,000.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...